there are a few ways you can go.
you can go with one that fits the budget and will work great for surround but in a few years you may be looking to spend another 200 - 300 for another upgrade.
you can spend around the 450 range get a receiver that has multi hdmi inputs(for most HDboxes) and last you for a solid 5 - 8 years until the next big thing comes out for home audio.
the thing you have to consider is your tv an HDTV and does it have an hdmi input. if it does not then i would go the first way unless you are planning to buy an HDTV soon.
the product that i like the best is JVC's new receiver the rx-d402 or rx-d702. i currently do not own either of them but i am in the process of saving up for the 702 and also waiting to see some more revies on them.
I am looking for a receivers that's cheap but yet good quality. there are few in my mind, like
Yamaha HTR-5830 $200
Onkyo TX-LR552 $200
well, I don't know much about them but I have only try YamahaHTR-5830 since I was helping my friend to install it, and it sounds good and very easy to use.
sorry, I know my budget is tight. because I know I am cheap ***. beside those above, maybe you can give me any suggestion of the one in your mind